Lithium-ion batteries are expected to account for the largest share of the grid battery market

Demand for the global grid battery market will reach $1.37 billion in 2018 and is expected to rise to $5.82 billion by 2023, with a compound annual growth rate of $33.52 billion, according to a recent study by Marketsandmarkets.

The rapid growth of this market is mainly due to technological progress and expansion, increased investment in renewable energy, lower grid battery costs, and increased demand for government subsidies and energy efficiency.

According to battery classification, by 2023, lithium-ion batteries are expected to account for the largest share of the grid scale battery market. These batteries have a high energy and power density, which allows them to be lightweight, standby losses are less, and the expected service life is 5-15 years, and the efficiency is as high as 98. In addition, the weight of these batteries is more advantageous than nickel cadmium and nickel metal hydride batteries.

According to the ownership model, it is expected that by 2023, the third-party battery market may grow at the fastest rate. Third party-owned models have been widely adopted in North America, Europe and elsewhere because they can improve the overall stability of the grid. In addition, third-party owned systems are encouraged by Governments.

Depending on the application, the market has been subdivided into renewable energy integration, peak transfer, ancillary services, backup power and other(including microgrids). Factors such as meeting renewable energy targets and energy efficiency, increased reliability, safety and flexibility requirements for microgrid applications are expected to drive the rapid growth of the grid scale battery market during the forecast period.

According to the regional situation, North America dominates the battery market on the scale of the grid. The growth in the North American grid battery market can be attributed to increased demand for renewable energy storage in the residential, non-residential and utility sectors.

On the other hand, the main factors that constrain the growth of the grid battery market include dangerous environmental impacts and high capital investment.

In this market, most of the participants are global multinational companies. In the grid scale battery market, its leading manufacturers mainly include South Korea LG Chemical Company, Samsung Electronics, Matsushita, the United States Fluence, China BYD, Swiss ABB, General Electric, Japan Yuasa, Japan Toshiba and so on.

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